Crypto Market Reacts to Potential Rate Cut: Will Bitcoin Thrive?

As expectations for a rate cut by the U.S. Federal Reserve in September grow, Arthur Hayes, co-founder of BitMEX, assesses the potential impact on the cryptocurrency market and Ethena (ENA). Recent data suggests a possibility of a 50 basis point rate cut instead of the predicted 25 basis points due to disappointing US nonfarm payrolls and bond yield figures. CME FedWatch Tool data currently indicates an 88% probability of a 25 basis point rate cut at the September meeting, with a further 70% chance of another 25 basis point cut in December if these occur.